1
1 STATE OF NEW JERSEY
2 CASINO CONTROL COMMISSION
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5 PUBLIC MEETING NO. 06-03-01
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9 Wednesday, March 1, 2006
10 Atlantic City Commission Offices
11 Joseph P. Lordi Public Meeting Room - First Floor
12 Tennessee Avenue and Boardwalk
13 Atlantic City, New Jersey 08401
14 10:30 a.m. to 11:10 a.m.
15
16
17 Certified Shorthand Reporter: Darlene Sillitoe
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19
20 CIPOLLONI & ASSOCIATES, INC.
21 CERTIFIED SHORTHAND REPORTERS
22 1125 ATLANTIC AVENUE, SUITE 416
23 ATLANTIC CITY, NEW JERSEY 08401
24 (609) 348-9190
25 www.cipolloni-associates.com
2
1 B E F O R E :
2 CASINO CONTROL COMMISSION:
LINDA M. KASSEKERT, CHAIR
3 RALPH G. FRULIO, VICE CHAIR
MICHAEL C. EPPS, COMMISSIONER
4 MICHAEL A. FEDORKO, COMMISSIOENR
WILLIAM T. SOMMELING, COMMISSIONER
5
PRESENT FOR THE CASINO CONTROL COMMISSION:
6 DARYL W. NANCE, ADMINISTRATIVE ANALYST
DANIEL J. HENEGHAN, PUBLIC INFORMATION OFFICER
7
OFFICE OF THE GENERAL COUNSEL:
8 DIANNA W. FAUNTLEROY, GENERAL COUNSEL/EXECUTIVE
SECRETARY
9 MARY WOZNIAK, ASSISTANT GENERAL COUNSEL
SUSAN L. MYERS, SENIOR COUNSEL
10 STEVEN M. INGIS, ASSISTANT GENERAL COUNSEL
SETH H. BRILIANT, SENIOR COUNSEL
11 LON E. MAMOLEN, SENIOR COUNSEL
BERNADETTE T. FRIGEN, PROGRAM SUPERVISOR
12 SANDRA DELIA, LEGAL SUPPORT SPECIALIST
13
DIVISION OF GAMING ENFORCEMENT
14 DEPUTY ATTORNEYS GENERAL:
JAMES ARMSTRONG, DEPUTY ATTORNEY GENERAL
15 TIMOTHY FICCHI, DEPUTY ATTORNEY GENERAL
JAMES FOGARTY, DEPUTY ATTORNEY GENERAL
16 RAYMOND MARQUEZ, DEPUTY ATTORNEY GENERAL
BEVERLY TANNENHAUS, DEPUTY ATTORNEY GENERAL
17
18
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23
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3
1 AGENDA
PUBLIC MEETING NO. 06-03-01
2 March 1, 2006, 10:30 a.m.
ITEM PAGE VOTE
3
1 Ratification of the minutes of 8 8
4 February 15, 2006
2 Applications for emloyee and casino 9 9
5 service industry licenses
3 Stipulations of settlement and
6 consent agreements:
a) John A. Hanchar (06-0054-EA) 11 13
7 b) Patricia Y. Higgs (05-0674-ER) 11 13
c) Gregory E. Moore (05-0094-ER) 11 13
8 d) Robert L. Warder (05-0739-EA) 11 13
e) Ednardo Valentin (04-0584-ER) 11 13
9 f) Joi N. Robinson (06-0026-EA) 11 13
g) Gar L. Lee (05-0698-ER) 11 13
10 h) Steven R. Sparano (05-0312-ER) 11 13
i) Michael J. Inforzato (06-0018-EA) 11 13
11 j) Donald K. Larmore (05-0464-ER) 11 13
k) Carol R. Sulprizio (06-0029-EA) 11 13
12 4 Reconsideration of Commission final orders
Due to Noncompliance of conditions therein:
13 a) William R. Anderson (05-0524-NC) 12 13
b) Michael Douglas (05-0691-NC) 12 13
14 c) Noland W. Graffeo (05-0693-NC) 12 13
d) Samuel A. Holt (05-0692-NC) 12 13
15 e) Patrick J. Kennedy (05-0709-NC) 12 13
f) Osvaldo Torres (05-0689-NC) 12 13
16 5 Petitions for early reapplication:
a) James R. Chubb (05-0868-RA) 15 16
17 b) Terrie A. Mault (05-0827-RA) 16 18
Terrie A. Mault 16
18 6 Applications for suspension:
a) Danny P. Andujar (06-0089-RC) 18 19
19 b) Jose F. Camacho-Hernandez 18 19
(a/k/a Jose Camacho) (06-0072-RC)
20 c) Kelly M. Moelius (06-0070-RC) 18 19
d) Yely Nunez-Jimenez (06-9909-RC) 18 19
21 7 Preliminary hearing concerning 19 20
the exclusion of Alex Lu (a/k/a
22 Alexander Luu, Alex Lun, Alex Luu)
(06-0039-EL)
23 8 Petition of Harrah's Operating 20 23
Company, Inc., for approval of
24 transfers of securities pursuant to
NJAC 19:43-2.98 and other relief (PRN 0180605)
25
4
1
AGENDA (CONTINUED)
2 PUBLIC MEETING NO. 06-03-01
March 1, 2006, 10:30 a.m.
3 ITEM PAGE VOTE
4 9 Amended petition of Morgan Stanley 24 26
& Co. and Morgan Stanley DW, Inc,
5 for a waiver of qualification pursuant
to NJSA 5:22-85f (PRN 0330608)
6 10 Petition of Ace Gaming, LLC, and 26 28
American Properties Investorxz, Inc.,
7 for a waiver of the qualification requirement
for Adrian Tannian (PRN 02700602)
8 11 Consideration of the qualification 28 30
of Jon C. Wolfe as Senior Vice Presdident
9 and Chief Information Officer of RIH
Resorts, LLC, and Executive Vice President
10 and Chief Information Officer of Colony
RIH Holdings, Inc.
11 12 Petition of IGT to terminate the Harley 30 32
Davidson $.05 slot system and to transfer (36)
12 its Combination Jackpot to the progressive
jackpot of Wheel of Fortune $.01 slot
13 system pursuant to NJAC 19:45-1.39(N) 32 34
13 Petition of IGT to terminate the Austin (37)
14 Powers $.05 slot system and to transfer
and split its progressive jackpot to the
15 progressive jackpots of the TV Hits and
the Megariches slot systems (PRN 0230605)
16 14 Consideration of the possession and 37 46
display of slot machines by Double D.
17 Gaming, Inc., pursuant to NJAC 19:46-1.22(b)
Martin Caplan 39
18 15 Proposed adoption of amendments to NJAC
19:45-1.42 (remnoval of slot drop buckets 46 47
19 and slot drop boxes
16 Proposed adoption of amendment to 47 49
20 NJAC 19:45-1.48 (transport of keno drawers)
17 Proposed publication and temporary 49 50
21 adoption of amend,ments to NJAC 19:47-3.12,
4.12, and 7.11 (disclosed card dealt in
22 error for Baccarat-Punto Banco,
Baccaret-Chemin De Fer, and Minibaccaret
23 18 Proposed adoption of amendment to NJAC
19:47-20.11 (alternative pay tables for 50 52
24 pair plus wager in three card poker)
25
5
1 E X H I B I T S :
2
ITEM NO. 1 DESCRIPTION ID EVD
3
4 EL-1 Remand for hearings 12 license 8
applications
5 EL-2 Grant 6 licenses 8
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7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22 (Exhibits retained by Commission.)
23
24
25
6
1 (Public Meeting 06-03-01 was commenced at
2 10:30 a.m.)
3 MR. NANCE: I'd like to read an opening
4 statement:
5 This is to advise the general public that in
6 compliance with Chapter 231 of the Public Laws of
7 1975 entitled the "Open Public Meetings Act," the
8 New Jersey Casino Control Commission on October
9 13th, 2005, filed with the Secretary of State at the
10 State House in Trenton an annual meeting schedule.
11 On October 14th, copies were mailed to the Press of
12 Atlantic City, the Newark Star Ledger, and the
13 office of the clerk of Atlantic City.
14 Members of the press will be permitted to
15 take photographs, and we would ask that this be done
16 in a manner which is not disruptive or distracting
17 to the Commission.
18 The use of cellular telephones in the public
19 meeting room while the Commission is in session is
20 prohibited.
21 Any members of the public who wish to
22 address the Commission will be given the opportunity
23 to do so before the Commission adjourns for the day.
24 Please stand for the pledge of allegiance.
25 (The flag salute was recited.)
7
1 CHAIR KASSEKERT: Good morning.
2 MR. NANCE: Good morning.
3 Matters discussed in closed session were:
4 employee and enterprise license matters.
5 The Commissioners approved the February
6 15th, 2006, closed session minutes.
7 Litigation update regarding Warren Lackland
8 and Lewis M. Springer, Jr, versus State of New
9 Jersey, Casino Control Commission, and Gloria Ford
10 versus State of New Jersey, Casino Control
11 Commission and Linda M. Kassekert individually and
12 as Chair; and Tyrone J. Floyd versus Casino Control
13 Commssion, Sands Hotel and Casino.
14 Item No. 1, ratification of the minutes of
15 February 15th, 2006, public meeting.
16 COMMISSIONER FEDORKO: Motion to approve.
17 VICE CHAIR FRULIO: Second.
18 CHAIR KASSEKERT: The motion has been made
19 and seconded. All in favor?
20 (Ayes.)
21 CHAIR KASSEKERT: Opposed?
22 COMMISSIONER SOMMELING: Madame Chair, I
23 abstain.
24 CHAIR KASSEKERT: The motion carries.
25 Thank you. So noted.
8
1 MR. NANCE: Item No. 2, application for
2 employee and casino industry licenses. This agenda
3 item will be entered as Exhibit List 1 and 2.
4 Exhibit List 1 consists of 12 applications
5 for initial and/or renewal of casino key and casino
6 employee lisences.
7 The Division has objected to licensure.
8 VICE CHAIR FRULIO: Motion to remand for
9 hearings.
10 COMMISSIONER FEDORKO: Second.
11 CHAIR KASSEKERT: The motion has been made
12 and seconded. All in favor?
13 (Ayes.)
14 CHAIR KASSEKERT: Opposed?
15 (No response.)
16 CHAIR KASSEKERT: The motion carries.
17 MR. NANCE: Exhibit List 2 consists of six
18 applications for initial and/or renewal of casino
19 key and casino employee licenses.
20 Staff and the Division have recommended that
21 these licenses be granted.
22 VICE CHAIR FRULIO: Motion to grant
23 applications.
24 COMMISSIONER FEDORKO: Second.
25 CHAIR KASSEKERT: The motion has been made
9
1 and seconded. All in favor?
2 (Ayes.)
3 CHAIR KASSEKERT: Opposed?
4 (No response.)
5 CHAIR KASSEKERT: The motion carries.
6 MR. NANCE: For consideration is the
7 application of Regina M. Stasuk for a casino key
8 employee license and for qualification as Vice
9 President of Casino Marketing for Resort
10 International Hotel, Inc.
11 Staff and Division have recommended that
12 this application be granted.
13 VICE CHAIR FRULIO: Motion for granting key
14 license and for qualification.
15 COMMISSIONER FEDORKO: Second.
16 CHAIR KASSEKERT: Motion for -- oh. This is
17 a roll call vote.
18 MR. NANCE: Commissioner Sommeling?
19 COMMISSIONER SOMMELING: Yes.
20 MR. NANCE: Commissioner Epps?
21 COMMISSIONER EPPS: Yes.
22 MR. NANCE: Commissioner Fedorko?
23 COMMISSIONER FEDORKO: Yes.
24 MR. NANCE: Vice Chair Frulio?
25 VICE CHAIR FRULIO: Yes.
10
1 MR. NANCE: Chair Kassekert?
2 CHAIR KASSEKERT: Yes.
3 MR. NANCE: The record will reflect that the
4 motion is unanimous.
5 For consideration is the qualification of
6 Sean P. Evans in connection with the gaming related
7 casino service industry license of Aristocrat
8 Technologies, Inc., pursuant to NJAC
9 19:51-1.14B(h).
10 Staff and Division has recommended that this
11 application be granted.
12 VICE CHAIR FRULIO: Motion to find Sean P.
13 Evans plenarily qualified in connection the gaming
14 related casino service industry license of
15 Aristocrat Technologists, Inc.
16 COMMISSIONER FEDORKO: Second.
17 CHAIR KASSEKERT: The motion has been made
18 and seconded. All in favor?
19 (Ayes.)
20 CHAIR KASSEKERT: Opposed?
21 (No response.)
22 CHAIR KASSEKERT: The motion carries.
23 MR. NANCE: Item No. 3, stipulation of
24 settlement and consent agreement. When I call your
25 name, please come forward, stand behind this middle
11
1 table, spreading across the room so that you may be
2 seen: John A. Hanchar, Patricia Higgs, Gregory
3 Moore, Robert Warder, Ednardo Valentin, Joi
4 Robinson, Gar Lee, Steven Sparano, Michael
5 Inforzato, Donald Larmore, and Carlo Sulprizio.
6 CHAIR KASSEKERT: Has everyone who's name
7 been called come forward at this point? Okay. I'm
8 going to ask you that each state your name for the
9 record, starting with you, sir.
10 MR. INFORZATO: Michael Inforzato.
11 MS. ROBINSON: Joi Robinson.
12 MR. SULPRIZIO: Carl Sulprizio.
13 MR. LEE: Gar Lee.
14 MR. WARDER: Robert Warder.
15 CHAIR KASSEKERT: All right. In a moment
16 we're going to vote on the is stipulations that
17 you've agreed to with the Division of Gaming
18 Enforcement. I'm going to ask at this point if any
19 of you wish to be heard on your matter. You do not
20 have to say anything if you do not want to. Does
21 anyone wish to be heard? Okay.
22 Mr. Armstrong?
23 MR. ARMSTRONG: The Division has no nothing
24 to add. Just ask that you approve the stipulations.
25 CHAIR KASSEKERT: Thank you. Any questions?
12
1 COMMISSIONER FEDORKO: Motion to approve
2 stipulations.
3 VICE CHAIR FRULIO: Second.
4 CHAIR KASSEKERT: The motion has been made
5 and seconded. All in favor?
6 (Ayes.)
7 CHAIR KASSEKERT: Opposed?
8 (No response.)
9 CHAIR KASSEKERT: The motion carries.
10 Thank you very much for coming. Good luck.
11 MR. NANCE: Item No. 4, reconsideration of
12 Commission final orders due to noncompliance of
13 conditions therein: William Anderson, Michael
14 Douglas, Noland Graffeo, Samuel Holt, Patrick
15 Kennedy, and Osvaldo Torres.
16 Miss Frigen?
17 MS. FRIGEN: Let me ask whether any of these
18 individuals are present or represented? Okay.
19 Apparently, they are not here.
20 The Commission had granted each of these
21 individuals their license application with
22 conditions regarding reporting information to the
23 Division of Gaming Enforcement under certain time
24 frames, and each of these cases the individual has
25 failed to comply with the reporting requirement.
13
1 They also failed to attend a conference to discuss
2 the noncompliance issue. Consequently, these
3 matters are now before you for reconsideration.
4 CHAIR KASSEKERT: Thank you.
5 Mr. Armstrong?
6 MR. ARMSTRONG: Madame Chair, this is all
7 these people have had ample opportunity to avail
8 themselves of the due process you provide employees
9 and registrants and casino licensees. They've
10 ignored all kinds of correspondence and demands that
11 they appear in answer to either noncompliance with
12 prior stipulations of settlement and Commission
13 orders we'd ask that you vacate all those records
14 orders now.
15 CHAIR KASSEKERT: Thank you.
16 Any questions?
17 COMMISSIONER SOMMELING: Madame Chair, based
18 upon the noncompliance with the reporting conditions
19 set forth in their respective orders, vacate the
20 existing orders and deny the respective license
21 applications.
22 COMMISSIONER FEDORKO: Second.
23 CHAIR KASSEKERT: The motion has been made
24 and seconded. All in favor?
25 (Ayes.)
14
1 CHAIR KASSEKERT: Opposed?
2 (No response.)
3 CHAIR KASSEKERT: The motion carries.
4 MR. NANCE: Item No. 5, petition or early
5 reapplication for James Chubb and Terrie Mault.
6 Miss Frigen?
7 MS. FRIGEN: Let me ask whether Mr. Chubb is
8 present or represented? I don't believe I see him
9 in the meeting room.
10 For your consideration is his petition in
11 which he seeks permission to reapply early for a
12 license registration and/or a noncredential nonhotel
13 employment. By letters dated February 2nd and 21st
14 the Division has interposed an objection to the the
15 petition in its entirety.
16 CHAIR KASSEKERT: Thank you.
17 Mr. Armstrong?
18 MR. ARMSTRONG: Madame Chair, Commissioners,
19 you have our letter of February 2nd. On June 26th
20 of 2002 the Commission revoked Mr. Chubb's license
21 based on our complaint seeking revocation of that
22 credential because of his indictment for
23 disqualifying sexual assault charges. It is our
24 position, especially in light of the new arrest he's
25 had on December 15th of last year and that he is
15
1 still on probation, there is sufficient evidence on
2 the record before you this morning to provide the
3 relief that he's seeking here, that he be granted
4 any relief under his petition.
5 Thank you.
6 CHAIR KASSEKERT: Thank you.
7 Any questions?
8 COMMISSIONER FEDORKO: Motion to deny Mr.
9 Chubb permission to reapply early for a casino
10 employee license, a casino service employee
11 registration, and/or to obtain employment early as a
12 noncredential employee.
13 VICE CHAIR FRULIO: Second.
14 HAIR KASSEKERT: The motion has been made
15 and seconded. All in favor?
16 (Ayes.)
17 CHAIR KASSEKERT: Opposed?
18 (No response.)
19 CHAIR KASSEKERT: The motion carries.
20 MS. FRIGEN: Okay. Next we have Terrie
21 Mault. I believe she is present.
22 MS. MAULT: Yes.
23 MS. FRIGEN: I would ask Miss Mault to have
24 a seat at the table.
25 MS. MAULT: Hi.
16
1 MS. FRIGEN: Similar to the last matter --
2 yes, that's fine.
3 For your consideration is Miss Mault's
4 petition in which she seeks permission to apply
5 early for a nonregistration or non -- in this case
6 by letter dated February 6th the Division interposed
7 no objection to the petition conditioned upon Miss
8 Mault addressing two financial obligations.
9 CHAIR KASSEKERT: Thank you.
10 Miss Mault is there anything you'd like to
11 say today? We need to have you sworn if you do.
12 Please rise, and we'll administer the oath.
13 TERRIE A. MAULT, having been duly sworn to
14 tell the truth, testified as follows:
15 MR. NANCE: Please state your name for the
16 record.
17 MS. MAULT: Terrie A. Mault.
18 CHAIR KASSEKERT: Okay. Miss Mault. Go
19 ahead.
20 MS. MAULT: I'm trying to get back into the
21 casino industry. I let my license lapse, and I had
22 some financial as well as legal obligations to take
23 care of. I've tried to address every issue that I
24 was denied for, and I'm currently a full-time
25 employee at the Wal-Mart up in Audobon, New Jersey,
17
1 and I would like to try to get my license back to
2 come back down here and deal.
3 CHAIR KASSEKERT: Okay. You understand the
4 conditions that the Division corresponded with you?
5 MS. MAULT: Absolutely. Yes.
6 CHAIR KASSEKERT: And you're going to comply
7 with those issues?
8 MS. MAULT: Oh, yes.
9 CHAIR KASSEKERT: Okay. Let me ask if any
10 of the Commissioners have any questions?
11 Mr. Armstrong?
12 MR. ARMSTRONG: Madame Chair, the Division
13 has nothing to nothing to add other than what's in
14 our letter of February 6th.
15 CHAIR KASSEKERT: Thank you. If there
16 aren't any questions, I'll entertain a motion.
17 VICE CHAIR FRULIO: Move that Miss Mault
18 permission to reapply early for a casino employee
19 license, a casino service employee registration
20 and/or to obtain employment early as a noncredential
21 hotel employee subject to the compliance to certain
22 financial obligations.
23 COMMISSIONER FEDORKO: Second.
24 CHAIR KASSEKERT: The motion has been made
25 and seconded. All in favor?
18
1 (Ayes.)
2 CHAIR KASSEKERT: Opposed?
3 (No response.)
4 CHAIR KASSEKERT: The motion carries.
5 Thank you very much for coming. Good luck.
6 MS. MAULT: Thank you. I appreciate it.
7 Thank you.
8 MR. NANCE: Item No. 6, application for
9 suspension for Danny Andujar, Jose
10 Camacho-Hernandez, Kelly Moelius, Yely
11 Muenz-Jimenez.
12 MS. FRIGEN: Let me ask whether any of these
13 individuals are present or represented? Apparently
14 not.
15 I remand this matter over to the Division
16 CHAIR KASSEKERT: Thank you.
17 Mr. Armstrong?
18 MR. ARMSTRONG: Madame Chair, Commissions,
19 you have our complaint seeking revocation of all of
20 these credentials. They've all been involved in
21 very serious offenses, some of them involving the
22 casino industry. We ask that while the application
23 is pending before you that you suspend any
24 credential.
25 CHAIR KASSEKERT: Thank you.
19
1 Any questions?
2 COMMISSIONER SOMMELING: Motion to suspend
3 credentials.
4 COMMISSIONER EPPS: Second.
5 CHAIR KASSEKERT: The motion has been made
6 and seconded. All in favor?
7 (Ayes.)
8 CHAIR KASSEKERT: Opposed?
9 (No response.)
10 CHAIR KASSEKERT: The motion carries.
11 MR. NANCE: Item No. 7, preliminary hearing
12 concerning the exclusion of Alex Lu.
13 Miss Frigen?
14 MS. FRIGEN: Let me ask for the record
15 whether Mr. Lu or his attorney, William Hughes, is
16 present today? I don't believe so. Mr. Hughes
17 indicated that Mr. Lu would likely not be contesting
18 the preliminary order, and apparently he is not here
19 today.
20 CHAIR KASSEKERT: Good morning.
21 MS. TANNENHAUS: Hi. The Division will rely
22 on its papers. We feel that we have more than
23 proved the reasonable possibility that Mr. Lu
24 satisfies the criteria for exclusion from at casino
25 industry and the casinos. He pled guilty to a
20
1 federal crime that is very serious punishable by
2 more than six months, and the inimicality speaks for
3 itself. The offense was prostitution -- was using a
4 telephone. We rest on the papers, and I'm here to
5 ask answer any questions you might have in this
6 case.
7 CHAIR KASSEKERT: Thank you.
8 Any questions from the Division?
9 COMMISSIONER FEDORKO: Motion to grant the
10 Division's request for preliminary order placing the
11 name of Mr. Lu on the exclusion list pending the
12 final outcome of the related petition for final
13 exclusion.
14 VICE CHAIR FRULIO: Second.
15 CHAIR KASSEKERT: The motion has been made
16 and seconded. All in favor?
17 (Ayes.)
18 CHAIR KASSEKERT: Opposed?
19 (No response.)
20 CHAIR KASSEKERT: The motion carries.
21 Thank you.
22 MS. FRIGEN: Yes.
23 MR. NANCE: Item No. 8, petition of Harrah's
24 Operating Company, Inc., for approval of transfers
25 of securities pursuant to NJAC 19:43-2.8 and other
21
1 relief.
2 Miss Wozniak?
3 MS. WOZNIAK: Good morning. Mr. Anderson is
4 here on behalf of the Petitioners. You have Miss
5 Turi's letter of February 16th and Mr. Marquez is
6 here for the Division.
7 CHAIR KASSEKERT: Thank you.
8 CHAIR KASSEKERT: Mr. Anderson?
9 MR. ANDERSON: Good morning, Madame Chair.
10 Top 'o the morning to you all, Commissioners. Nice
11 to see you again.
12 I've reviewed the resolution that Miss
13 Wozniak and her staff has prepared, it looks like we
14 have no objection to the conditions being interposed
15 in the resolution. I'll be glad to answer any
16 questions if I can for you.
17 CHAIR KASSEKERT: Let me ask if there are
18 any questions.
19 COMMISSIONER SOMMELING: No questions,
20 Madame Chair.
21 CHAIR KASSEKERT: Okay. Mr. Marquez?
22 MR. MARQUEZ: Indicated she has no problem
23 with it.
24 CHAIR KASSEKERT: Thank you. Any questions
25 from the Division?
22
1 COMMISSIONER FEDORKO: I just have a
2 question for Harrah's. If the Division of taxation
3 acts on this, are you prepared to pay the --
4 whatever taxes are due?
5 MR. ANDERSON: Well, I assume that Harrah's
6 Corporation -- Harrah's Operating Company, Inc., is
7 actually the entity that's the taxable entity under
8 the consolidated returns that they -- and I assume
9 they will pay any taxes they lawfully have to pay
10 after all the appeals are exhausted. The issue just
11 hadn't come up because the returns haven't been
12 reviewed by the Division of Taxation yet. If that's
13 an answer to your question.
14 COMMISSIONER FEDORKO: It is. Thank you.
15 CHAIR KASSEKERT: I have a couple of remarks
16 I want to put on the record. This matter is before
17 us today pursuant to NJAC 19:43-2.8, which requires
18 that the Commission approve prior to the transfer of
19 securities such as the intercompany notes here at
20 issue. Our findings here today are of limited scope
21 and purpose. The point of requiring preapprovals is
22 to ensure that first the transferee is qualified
23 and, second, that the casino licensees will remain
24 financially stable after the transfer. I want to
25 make it clear today that it is neither our purpose
23
1 nor our intent to posit on the merits of Harrah's
2 interpretation of the state tax law. That is a
3 determination that is ultimately for the Division of
4 taxation as Commissioner Fedorko pointed out.
5 That said, I'll move to adopt the draft
6 resolution and approve the proposed transfer based
7 upon and to the extent set forth in the findings and
8 conditions therein. And I so moved. Is there a
9 second?
10 COMMISSIONER SOMMELING: Second.
11 CHAIR KASSEKERT: The motion has been made
12 and seconded. All in favor?
13 (Ayes.)
14 CHAIR KASSEKERT: Opposed?
15 (No response.)
16 CHAIR KASSEKERT: The motion carries.
17 Thank you.
18 MR. ANDERSON: Thank you.
19 MR. NANCE: Item No. 9, amended petition of
20 Morgan Stanley & Company and Morgan Stanley DW,
21 Inc., for a waiver of qualification pursuant no NJSA
22 5:12-85f.
23 Ms. Wozniak?
24 MS. WOZNIAK: Chair, Commissioners, Lynn
25 Kauffman is here on Petitioners and James Fogarty on
24
1 behalf of the Division. I have prepared a draft
2 resolution which has been distributed to the
3 parties.
4 CHAIR KASSEKERT: Thank you. Good morning,
5 Miss Kauffman.
6 MS. KAUFFMAN: Good morning. I've reviewed
7 the draft resolution and find it acceptable.
8 CHAIR KASSEKERT: Thank you. Mr. Fogarty?
9 MR. FOGARTY: Good morning, Commissioners.
10 James Fogarty for the Division.
11 I, too, have reviewed the draft resolution,
12 and this will be the one that was circulated Monday
13 morning, the 27th. And we have no objection to you
14 all passing that resolution.
15 I think it's important just to state
16 publicly for the record that Morgan Stanley never
17 based upon what we now know owned 20 percent of the
18 company of Trump. They own 20 percent of a certain
19 class of stock but, in fact, they never owned 20
20 percent of the company, actually 20.4 or 5.
21 Whatever the press reported on that. They, in fact,
22 owned roughly and maybe a particular over at a
23 certain point of time no more than 15 percent of the
24 voting securities of the company. And I know
25 there's some confusion, perhaps in your mind. Maybe
25
1 there wasn't. There was in mine and obviously in
2 the press as to what Morgan Stanley owned at a
3 certain point in time. And I just wanted -- thought
4 it would be helpful to point that out on the record.
5 CHAIR KASSEKERT: Thank you. I appreciate
6 your comments. I know how hard both you and Mary
7 Wozniak worked on this, and Mary's charged did not
8 go in vain in terms of researching this information
9 and breaking it down, so I appreciate that.
10 Let me ask if there are any questions.
11 COMMISSIONER SOMMELING: No questions,
12 Madame Chair.
13 COMMISSIONER SOMMELING: No questions,
14 Madame Chair.
15 VICE CHAIR FRULIO: Madame Chair, move to
16 approve the draft resolution and grant the requested
17 waiver of qualification to Morgan Stanley based upon
18 and to the extent set forth in the findings and
19 rulings and subject to the conditions contained in
20 the resolution.
21 COMMISSIONER FEDORKO: Second.
22 MR. NANCE: Commissioner Sommeling?
23 COMMISSIONER SOMMELING: Yes.
24 MR. NANCE: Commissioner Epps?
25 COMMISSIONER EPPS: Yes.
26
1 MR. NANCE: Commissioner Fedorko?
2 COMMISSIONER FEDORKO: Yes.
3 MR. NANCE: Vice Chair Frulio?
4 VICE CHAIR FRULIO: Yes.
5 MR. NANCE: Chair Kassekert?
6 CHAIR KASSEKERT: Yes.
7 MR. NANCE: The record will reflect that the
8 motion is unanimous.
9 MR. FOGARTY: Thank you.
10 MS. WOZNIAK: Thank you.
11 MR. NANCE: Item No. 10, petition of Ace
12 Gaming, LLC, and American Properties Investors,
13 Inc., for a waiver of the qualification requirement
14 for Adrian Tannian.
15 Miss Myers?
16 MS. MYERS: Good morning, Chair and
17 Commissioners. Dennis Daly is hear on behalf of the
18 petitioners and Ray Marquez on behalf of the
19 Division. I have circulated the draft resolution to
20 the parties.
21 CHAIR KASSEKERT: Mr. Daly?
22 MR. DALY: Good morning, Commissioners,
23 Chair. We've read the draft resolution and
24 certainly have no problem with it. It's a simple
25 matter involving a qualifier who may be wiaved. If
27
1 you agree with the Division of Gaming Enforcement,
2 we certainly would, too.
3 CHAIR KASSEKERT: Thank you.
4 Any questions for Mr. Daly?
5 COMMISSIONER SOMMELING: No questions,
6 Madame Chair.
7 CHAIR KASSEKERT: Mr. Marquez?
8 MR. MARQUEZ: We have no objection to it.
9 CHAIR KASSEKERT: Thank you. There are no
10 questions, I'll entertain a motion.
11 COMMISSIONER SOMMELING: Madame Chair, move
12 to adopt the draft resolution and waive the
13 qualification requirement pursuant to NJAC 5:85d(1)
14 as to Adrian Tannian in his capacity of Chief
15 Accounting Officer For American Properties
16 Investors, Incorporated.
17 CHAIR KASSEKERT: Is there a second?
18 COMMISSIONER FRULIO: Second.
19 COMMISSIONER FEDORKO: Roll call.
20 CHAIR KASSEKERT: I need a second first.
21 Now I'll take a roll call.
22 MR. NANCE: Commissioner Sommeling?
23 COMMISSIONER SOMMELING: Yes.
24 MR. NANCE: Commissioner Epps?
25 COMMISSIONER EPPS: Yes.
28
1 MR. NANCE: Commissioner Fedorko?
2 COMMISSIONER FEDORKO: Yes.
3 MR. NANCE: Vice Chair Frulio?
4 VICE CHAIR FRULIO: Yes.
5 MR. NANCE: Chair Kassekert?
6 CHAIR KASSEKERT: Yes.
7 MR. NANCE: The record will reflect that the
8 motion is unanimous.
9 CHAIR KASSEKERT: Thank you.
10 MR. DALY: Thank you.
11 MR. NANCE: Item No. 11, consideration of
12 the qualification of Jon Wolfe as Senior Vice
13 President and Chief Information Officer of RIH
14 Resorts, LLC, and Executive Vice President and Chief
15 Information Officer of Colony RIH Holdings, Inc.
16 Miss Delia?
17 MS. DELIA: Good morning, Chair,
18 Commissioners. John C. Wolfe found was temporarily
19 qualified by the Commission on June 20th, 2005. A
20 copy of the draft resolution has been distributed to
21 the parties for their review.
22 Pat wild is here on behalf of the
23 Petitioners and Ray Marquez is here on behalf of the
24 Division.
25 CHAIR KASSEKERT: Thank you, Miss Wild?
29
1 MS. WILD: Yes. Good morning,
2 Commissioners. Thank you. I have reviewed the
3 draft resolution, and we would ask that you adopt
4 the draft resolution as proposed.
5 CHAIR KASSEKERT: Thank you.
6 MR. MARQUEZ: And we have recommended to
7 grant qualification.
8 CHAIR KASSEKERT: Thank you. Any questions?
9 COMMISSIONER SOMMELING: No questions,
10 Madame Chair.
11 COMMISSIONER FEDORKO: Motion to adopt the
12 draft resolution and find Jon C. Wolfe qualified to
13 serve as Senior Vice President and Chief Information
14 Officer of RIH Resorts, LLC, and Executive Vice
15 President and Chief Exective Officer of Colony RIH
16 Holdings, Inc.
17 VICE CHAIR FRULIO: Second.
18 CHAIR KASSEKERT: That motion is made and
19 seconded this is a roll call vote.
20 MR. NANCE: Commissioner Sommeling?
21 COMMISSIONER SOMMELING: Yes.
22 MR. NANCE: Commissioner Epps?
23 COMMISSIONER EPPS: Yes.
24 MR. NANCE: Commissioner Fedorko?
25 COMMISSIONER FEDORKO: Yes.
30
1 MR. NANCE: Vice Chair Frulio?
2 VICE CHAIR FRULIO: Yes.
3 MR. NANCE: Chair Kassekert?
4 CHAIR KASSEKERT: Yes.
5 MR. NANCE: The record are will reflect that
6 the motion is unanimous.
7 MS. WILD: Thank you.
8 MR. NANCE: Item No. 12, petition of IGT to
9 terminate the Harley Davidson .05 slot system and to
10 transfer its combination jackpot to the progressive
11 jackpot of Wheel of Fortune .01 slot system,
12 pursuant to NJAC 19:45-1.39(N).
13 CHAIR KASSEKERT: Mr. Briliant?
14 MR. BRILIANT: Good morning, Madame Chair
15 and Commissioners. Mr. Previti is here on behalf of
16 IGT. Mr. Ficchi is here on behalf of the Division.
17 CHAIR KASSEKERT: Mr. Previti?
18 MR. PREVITI: Good morning, chair,
19 Commissioners. We're asking to transfer the Harley
20 Davidson game jackpot to the Wheel of Fortune penny.
21 There's a little difference here in the Harley game
22 actually has a prize of a meter amount plus either a
23 bike or 12,500. And for simplicity sake, we prefer
24 that the twelve-five be added to the meter rather
25 than offering the Wheel of Fortune penny game a
31
1 bike.
2 CHAIR KASSEKERT: Thank you. Any questions
3 for Mr. Previti?
4 COMMISSIONER SOMMELING: No questions,
5 Madame Chair.
6 CHAIR KASSEKERT: Mr. Ficchi?
7 MR. FICCHI: Thank you, Chair,
8 Commissioners.
9 You have the Division's letter drated by
10 Charles Kimmel, DAG, dated February 13th, where we
11 do not object to the transfer of the jackpot. It's
12 been our position on this one with regard to the
13 bike is that they can transfer the cash equivalent
14 of that bike and not have to actually transfer the
15 prize of the bike, but that's certainly in your
16 discretion as to how you want to handle that.
17 CHAIR KASSEKERT: Thank you, any questions?
18 COMMISSIONER SOMMELING: No questions,
19 Madame Chair.
20 COMMISSIONER SOMMELING: No questions,
21 Madame Chair.
22 CHAIR KASSEKERT: The bike or not the bike?
23 That is the question.
24 CHAIR KASSEKERT: Is there a motion?
25 COMMISSIONER FEDORKO: Motion to adopt the
32
1 draft resolution and approve the transfer of all
2 three elements of the combination progressive slot
3 jackpot subject to IGT's satisfaction of the 30-day
4 posting requirement in NJAC 19:45-1.39(n).
5 COMMISSIONER FEDORKO: Second.
6 COMMISSIONER EPPS: Second.
7 CHAIR KASSEKERT: The motion has been made
8 and seconded. All in favor?
9 (Ayes.)
10 CHAIR KASSEKERT: Opposed?
11 (No response.)
12 CHAIR KASSEKERT: The motion carries.
13 CHAIR KASSEKERT: Thank you.
14 MR. NANCE: Item No. 13, petition of IGT to
15 terminate the Austin Powers .05 slot system and to
16 transfer and split its progressive jackpot to the
17 progressive jackpot of the TV hits and Megariches
18 slot system.
19 Mr. Briliant?
20 MR. BRILIANT: Light. In this matter,
21 Commissioners there is a draft resolution that
22 circulated. There was not a draft resolution for
23 the prior matter, but I will certainly write one up
24 to comply with the motion that was made. Mr.
25 Previti and Mr. Ficchi are here.
33
1 CHAIR KASSEKERT: Thank you.
2 MR. PREVITI: Good morning again. This one
3 is very simple. It's taking the meter from the one
4 jackpot and putting it over to two others that
5 actually have all the -- all the elements. I'll be
6 happy to answer any questions.
7 CHAIR KASSEKERT: Thank you.
8 Mr. Ficchi?
9 MR. FICCHI: Thank you, Chair. The
10 Division's position is always more in our letter of
11 February 14th where we did not object to the
12 transfer of the jackpot.
13 CHAIR KASSEKERT: Thank you. Any questions?
14 (Mr. Briliant and Commissioner Epps
15 conferring.)
16 CHAIR KASSEKERT: Any questions?
17 COMMISSIONER SOMMELING: No questions,
18 Madame Chair.
19 VICE CHAIR FRULIO: Move to adopt the draft
20 resolution and approve IGT's request to transfer the
21 progressive slot machine jackpot subject to the
22 conditions in the resolution.
23 COMMISSIONER SOMMELING: Second.
24 CHAIR KASSEKERT: The motion has been made
25 and seconded. All in favor?
34
1 (Ayes.)
2 CHAIR KASSEKERT: Opposed?
3 (No response.)
4 CHAIR KASSEKERT: The motion carries.
5 COMMISSIONER EPPS: Madame Chair?
6 CHAIR KASSEKERT: Yes.
7 COMMISSIONER EPPS: May I make a motion for
8 reconsideration on Item No --
9 COMMISSIONER FEDORKO: 12.
10 COMMISSIONER EPPS: 12?
11 CHAIR KASSEKERT: Is there a second for that
12 motion?
13 COMMISSIONER SOMMELING: Second.
14 COMMISSIONER FEDORKO: Second.
15 CHAIR KASSEKERT: I don't know. Do we need
16 to take a vote on motion to reconsideration?
17 CHAIR KASSEKERT: Yes, you did. You just
18 did.
19 CHAIR KASSEKERT: Okay.
20 The motion has been made and seconded. All
21 in favor?
22 (Ayes.)
23 CHAIR KASSEKERT: Opposed?
24 (No response.)
25 CHAIR KASSEKERT: The motion carries.
35
1 COMMISSIONER FEDORKO: Move to --
2 COMMISSIONER EPPS: I will move in the
3 alternative that we waive of the requirements of --
4 1.4 and M 4 and NJAC 19:45-1.9 N and a combination
5 progress jackpot be transferred in its entirety.
6 Further determine that the merchandise, motorcycle
7 prize need not be transferred and permit the
8 transfer of the progressive jackpot and the $12,500
9 alternative cash price subject to IGT's satisfaction
10 of the 30 day posting requirement in NJAC 19:45-1.
11 3.9(n), which would be more specific to the request
12 that was made.
13 CHAIR KASSEKERT: Right.
14 COMMISSIONER FEDORKO: Second.
15 CHAIR KASSEKERT: Is there a second?
16 COMMISSIONER FEDORKO: Second.
17 COMMISSIONER SOMMELING: Second.
18 CHAIR KASSEKERT: And just to clarify, this
19 means that the motorcycle does not get transferred;
20 correct?
21 COMMISSIONER FEDORKO: Correct.
22 MR. BRILIANT: Correct.
23 CHAIR KASSEKERT: All right.
24 The motion has been made and seconded. All
25 in favor?
36
1 (Ayes.)
2 CHAIR KASSEKERT: Opposed?
3 (No response.)
4 CHAIR KASSEKERT: The motion carries.
5 MR. PREVITI: Thank you.
6 MR. BRILIANT: Madame Chair, did you want to
7 make any comments to delegated authority resolutions
8 of the Austin Powers matter?
9 MR. NANCE: It's Item 13.
10 CHAIR KASSEKERT: It's Item 13.
11 CHAIR KASSEKERT: All right. Yes. Yes. I
12 would. Thank you.
13 With respect to the transper of the Austin
14 Power slot system, I should note that although the
15 specifications of the jackpots in question aren't
16 identical, they do meet for exceed the requirements
17 for a transfer under NJAC 19:45-3.39(n). And I see
18 no reason why similar proposed progressive jackpot
19 transfer shall not be subsequently approved by
20 delegated authority.
21 This is the first time this matter has been
22 brought before us, this is why we brought it to the
23 full Commission. Such delegated authority is
24 limited to jackpots with identical requirements
25 only, so I will on the record then, therefore,
37
1 direct our staff to prepare and presents to us an
2 amendment to delegate authority resolution to
3 approve progressive transsport transfers which
4 neither meet or exceed the requirements of NJAC
5 19:45-1.39a. thank you.
6 MR. PREVITI: Okay.
7 MR. BRILIANT: And we did take a vote on
8 Austin Powers?
9 CHAIR KASSEKERT: Yes. We did. We did take
10 a vote.
11 MR. PREVITI: Thank you.
12 MR. NANCE: Item No. 14, consideration of
13 the possession of display of slot machines by Double
14 D Gaming, Inc., pursuant to NJAC 19:46-1.22(b).
15 Mr. Briliant?
16 MR. BRILIANT: Okay. Madame Chair and
17 Commissioners, Mr. Martin Caplan is here on behalf
18 of Double D Gaming. He is the sole shareholder of
19 that corporation and, therefore, can speak on its
20 behalf, and Mr. Ficchi is here on behalf of the
21 Division.
22 CHAIR KASSEKERT: Thank you. Good morning.
23 MR. CAPLAN: Good morning. Members of the
24 Commission, thank you for the opportunity to appear
25 today and consider my request to display slot
38
1 machines at the 11th Annual New Jersey --
2 CHAIR KASSEKERT: Let me just interrupt you
3 for one second. Are you an attorney, sir?
4 MR. CAPLAN: No, I am not.
5 CHAIR KASSEKERT: We need to swear you in.
6 MARTIN CAPLAN, having been duly sworn to
7 tell the truth, testified as follows:
8 CHAIR KASSEKERT: Thank you Mr. Caplan. You
9 can proceed.
10 MR. CAPLAN: My name is Martin Caplan. I'm
11 the president of Double D Gaming, Inc., located at
12 1146 South Delsea Drive, Vineland, New Jersey,
13 08360. I currently have licensing pending before
14 the Commission for a CSI license filed October 19th,
15 2005. And I've been approved by the Division of
16 Gaming Enforcement as a slot storage warehouse. On
17 December 21st, 2005. I have a copy of my letter
18 with me today. I was led to believe that display of
19 as yet unapproved machines at the amusement show was
20 permissible activity. I've complied with all the
21 conditions imposed by the legalized games of chance
22 control commission and have permission to display
23 from that agency.
24 However, having spoken with Mr. Briliant on
25 many occasions concerning slots, I did not believe
39
1 that information was totally accurate and operated
2 to contact Mr. Briliant for a more informed official
3 opinion from the Commission before proceeding. The
4 machines in question are four units are being
5 converted to which subtokens have had the hoppers
6 removed, pay out winning combinations in the form of
7 printed tickets that specify points and dispense
8 generic paper tickets. I have samples of all them
9 with me today. In addition the software that
10 controls the operation of the games, it has been
11 modified to affect a pay out ratio in excess of 950
12 percent. The machines on display will have coin
13 trays loaded with Double D brand tokens. There's no
14 charge imposed to play or evaluate the operation of
15 our machines. Further, the machines have been
16 converted to still stop units, do not use random
17 number generator. If tokens are inserted, and the
18 player fails to manual stop the wheels, the machine
19 time out and the time starts back the tokens revert
20 to play. The units on display will not be sold and
21 will be returned to me at the conclusion of the
22 show. Of the four units I plan to display. Wild
23 Cherry, Wild Bunch, Cherry 7, which I've submitting
24 applications for approval to Legalized Games Control
25 Commission and have copies of those applications
40
1 with me today along with proof of mailing of the
2 post office and certified receipts. This is my
3 understanding that Mr. Briliant can verify the
4 submissions to Legalized Games. I have certificates
5 of per admissability from legalized games for all
6 divergence of Wild Cherry and Cherry 7s with me
7 today as well. With all the pertinent facts, I'm
8 asking that the Commission grant my request to
9 display the four units at the amusement show.
10 I'll answer any questions that the
11 Commission may have about it.
12 CHAIR KASSEKERT: Thank you. Could you just
13 clarify, the protypes have all been submitted to
14 Legalized Games of Chance?
15 MR. BRILIANT: Yes.
16 CHAIR KASSEKERT: Okay. Very good.
17 Let me ask if there are any othere
18 questions. Okay.
19 MR. FICCHI: Madame Chair, I'm handling this
20 mad for DAG Kimmel who was on this matter initially.
21 The Commission as obviously jurisdiction in this
22 matter. The Division would recommend though that
23 the Commission not exercise that jurisdiction. The
24 machines that Mr. Caplan is referring to have been
25 machines that have been converted to a nonslot
41
1 machine status and, in fact, in other areas of the
2 in state, amusement parks that kind of thing where
3 they're under the jurisdiction. Legalized Games f
4 Chance, Commission of Legalized Games of Chance in
5 the state, which is the sister agency. We would
6 just recommend that even though the Commission can
7 exercise authority to grant specific approvals that
8 they not -- excuse me, that they not exercise that
9 jurisdiction in matters such as these.
10 CHAIR KASSEKERT: Thank you.
11 So what you're suggesting is that we retain
12 jurisdiction but determine that the permit is not
13 required or because everything has been submitted to
14 the Legalized Games of Chance Commission.
15 MR. FICCHI: Let Legalized Games of Chance
16 handle it basically but the Commission would always
17 have jurisdiction over any slot machine in the
18 state.
19 CHAIR KASSEKERT: Commissioner Epps, you
20 have a question? I mean, I guess the question is
21 the Legalized Game of Chance have not ruled on this
22 particular matter yet, but in the interim they are
23 seeking to be displayed somewhere other than where
24 there's a permit. That's where we're in a quandry
25 sort of caught in that in between cycle. Are you
42
1 suggesting that we permit or we not deal were a
2 permit on this issue because its -- it's not been
3 approved by games of chance yet?
4 MR. FICCHI: I would say that the
5 Commission-- the Division would say that first
6 Legalized Games of Chance should rule on the
7 qualification of these machines.
8 COMMISSIONER EPPS: Well, ordinarily that
9 would be the case except that we have got a time
10 crunch which makes this a more difficult matter.
11 There's something that needs to happen in the
12 interim. So we would either retain jurisdiction and
13 grant a permit or we would leave it up to games of
14 chance. If we leave it up to games of chance if
15 something occurs in the interim.
16 CHAIR KASSEKERT: Acts.
17 COMMISSIONER EPPS: Is that accurate.
18 MR. BRILIANT: Right. I think it's
19 important to note on the record, it's my
20 understanding that the Legalized Games of Chance
21 policy is that if an amusement device has been
22 submitted to that agency and accepted for review,
23 they would permit the display of that device at one
24 of these trade shows on the condition that it be not
25 be sold or used until it is actually finally
43
1 approved.
2 MR. FICCHI: Okay.
3 MR. BRILIANT: So.
4 COMMISSIONER EPPS: So we don't --
5 MR. FICCHI: Under those conditions then.
6 COMMISSIONER EPPS: There's no permit
7 issued.
8 MR. BRILIANT: No. No. If the Commission
9 were to take the position that it -- that these
10 devices are now under legalized games jurisdiction,
11 Legalized Games has a policy and a procedure in
12 place for allowing their display, in this type of
13 situation, and we wouldn't have to issue a permit
14 because we would be saying that they would not be
15 under our jurisdiction in this situation.
16 As Mr. Ficchi noted, we still have
17 jurisdiction over slot machines. This thing is
18 somewhere between being a slot machine and being
19 something else.
20 CHAIR KASSEKERT: Right.
21 MR. BRILIANT: In the past we've always said
22 a slot machine is a slot machine until some other
23 agency finally rules on what it is. We're or
24 approves it as something else. We are somewhere in
25 between that.
44
1 COMMISSIONER EPPS: So this action today
2 will basically change that status and say that once
3 a slot machine is submitted to games of chance, it
4 is no longer a slot machine.
5 MR. BRILIANT: Right. We would be modifying
6 our previous procedure to this extent.
7 COMMISSIONER EPPS: Would that require a reg
8 change?
9 MR. BRILIANT: I don't believe so. But
10 that's something I could look into.
11 CHAIR KASSEKERT: But, of course, just by
12 virtue of the fact that the machine's been modified
13 it is -- I mean, it isn't a slot machine in the
14 purest sense because it's been modified.
15 MR. BRILIANT: Yeah. Legally it's still a
16 slot machine because of the way the statutes are
17 written. Even if you take a slot machine apart and
18 put all the parts in a box, it's still a slot
19 machine because you could put it back together, and
20 it would still work. It may not look like a slot
21 machine or operate like one, but theoretically at
22 least you could undue all of the modifications and
23 then you have what you started with. It's kind of
24 like a gun. You can take it apart, it's still a
25 gun.
45
1 CHAIR KASSEKERT: Any other questions?
2 CHAIR KASSEKERT: I just want to see if
3 counsel.
4 MR. BRILIANT: Okay.
5 CHAIR KASSEKERT: Anything else you need to
6 point out Mr. Briliant?
7 MR. BRILIANT: Only that this ruling, I
8 think sort of applies to this specific situation.
9 There may be other cases that people do, I don't
10 know what to slot machines and we would have to deal
11 with them on a case by case basis. But I think this
12 is a fairly novel and unique type situation so --
13 VICE CHAIR FRULIO: So this wouldn't put us
14 in a bind when VLTs come out down the road.
15 MR. BRILIANT: VLT and amusement device --
16 they both may be amusing -- but they are two
17 separate kinds of things.
18 CHAIR KASSEKERT: Okay. Any other
19 questions?
20 COMMISSIONER SOMMELING: No questions,
21 Madame Chair.
22 CHAIR KASSEKERT: Commission Fedorko?
23 COMMISSIONER FEDORKO: Madame Chair, I'm
24 going to make a motion that we determine that a
25 Commission display permit is not required because
46
1 the jurisdiction of the device now lies with
2 Legalized Games of Chance Commission.
3 VICE CHAIR FRULIO: Second.
4 CHAIR KASSEKERT: The motion has been made
5 and seconded. All in favor?
6 (Ayes.)
7 CHAIR KASSEKERT: Opposed?
8 COMMISSIONER EPPS: No.
9 CHAIR KASSEKERT: Commission Epps opposed.
10 The motion passes four to one.
11 Thank you very much.
12 MR. CAPLAN: Thank you.
13 MR. BRILIANT: Thank you.
14 MR. FICCHI: Thank you.
15 MR. NANCE: Item No. 15, proposed adoption
16 of amendments to NJAC 19:45-1.42.
17 Mr. Briliant?
18 MR. BRILIANT: Okay. The proposal before
19 you would decrease the frequency of mandatory coin
20 drops from once a month to no less than once every
21 two months for slot machines that are connected to
22 an approved gaming voucher system provided that the
23 casino licensee submits weekly estimated gross
24 revenue reports in the interim and pays the
25 estimated taxes thereon. If necessary or desired, a
47
1 casino licensee could always conduct coin drops more
2 frequently.
3 The notice of proposal in this matter was
4 published in the New Jersey Register on December
5 19th, 2005, and when the public comment period
6 expired on February 17th, 2006, one comment had been
7 received from the Division of Gaming Enforcement
8 which did not object to the proposal.
9 Now the matter is now before you for final
10 consideration.
11 CHAIR KASSEKERT: Thank you Mr. Briliant. I
12 would note that this is another in the continuing
13 wish list items.
14 Let me ask if there are any questions.
15 COMMISSIONER SOMMELING: Move to adopt as
16 published Madame Chair.
17 COMMISSIONER FEDORKO: Second.
18 CHAIR KASSEKERT: The motion has been made
19 and seconded. All in favor?
20 (Ayes.)
21 CHAIR KASSEKERT: Opposed?
22 (No response.)
23 CHAIR KASSEKERT: The motion carries.
24 MR. NANCE: Item number 16 proposed adoption
25 of amendment to NJAC 19:45-1.48.
48
1 Mr. Briliant?
2 MR. BRILIANT: This proposal would eliminate
3 the requirement of a security escort for the
4 transport of a keno drawer to the casino cage if the
5 keno drawer is transported in a locked cart and the
6 surveillance department is notified in advance of
7 the transfer. The notice of proposal was published
8 in the New Jersey Register on December 19th, 2005,
9 and when the public comment period expired on
10 February 17th, 2006, we had received one comment
11 from the Division which did not object to the
12 proposal.
13 The matter is now before you for final
14 consideration.
15 CHAIR KASSEKERT: Thank you.
16 Any questions?
17 COMMISSIONER SOMMELING: No questions,
18 Madame Chair.
19 VICE CHAIR FRULIO: Move to adopt as
20 published.
21 COMMISSIONER FEDORKO: Second.
22 CHAIR KASSEKERT: The motion has been made
23 and seconded. All in favor?
24 (Ayes.)
25 CHAIR KASSEKERT: Opposed?
49
1 (No response.)
2 CHAIR KASSEKERT: The motion carries.
3 MR. BRILIANT: Thank you very much.
4 MR. NANCE: Item No. 17, proposed
5 publication and temporary adoption of amendments to
6 NJAC 19:47-3.12, 4.12, 7.11.
7 Mr. Mamolen?
8 MR. MAMOLEN: Good morning, Madame Chair and
9 Commissioners.
10 This matter is before you for both
11 publication and temporary adoption of a modification
12 to an irregularity in the games of Baccaret-Punto
13 Banco, baccarat-Chemin De Fer, and Minibaccarat. In
14 essence, the situation occurs whenever a card is
15 disclosed in error that is not to be used in a round
16 of play. This happens in all three games, I'm told,
17 from time to time. And what the proposal would do
18 in essence would afford the licensee the option to
19 choose one of three alternatives in ceiling with the
20 irregularity.
21 CHAIR KASSEKERT: Thank you.
22 Any questions?
23 VICE CHAIR FRULIO: No.
24 COMMISSIONER SOMMELING: No questions,
25 Madame Chair.
50
1 COMMISSIONER FEDORKO: Motion to approve for
2 publication and temporary adoption.
3 VICE CHAIR FRULIO: Second.
4 CHAIR KASSEKERT: The motion has been made
5 and seconded. All in favor?
6 (Ayes.)
7 CHAIR KASSEKERT: Opposed?
8 (No response.)
9 CHAIR KASSEKERT: The motion carries.
10 MR. NANCE: Item No. 18 proposed adoption of
11 amendment to NJAC 19:47-20.11.
12 Mr. Mamolen?
13 MR. MAMOLEN: This matter is before you for
14 a final adoption. In essence it's the addition of
15 two alternative pay tables for the Pair Plus wager
16 and three card poker, both of the new alternative
17 pay tables have a slightly -- somewhat I should say
18 higher house advantage than the preexisting two.
19 There was one comment received during the
20 comment period that being from the Division of
21 Gaming Enforcement which did not interpose an
22 objection.
23 CHAIR KASSEKERT: Thank you.
24 Any questions?
25 COMMISSIONER SOMMELING: Move to adopt as
51
1 published.
2 COMMISSIONER FEDORKO: Second.
3 CHAIR KASSEKERT: The motion has been made
4 and seconded. All in favor?
5 (Ayes.)
6 CHAIR KASSEKERT: Opposed?
7 (No response.)
8 CHAIR KASSEKERT: The motion carries.
9 MR. MAMOLEN: Thank you.
10 MR. NANCE: In accordance with resolution
11 05-14-19 next closed session of the Commission shall
12 be held on Wednesday, March, 15th, 2006, 9:15 a.m.
13 in the Commission offices.
14 It's now time for the public participation
15 portion of the meeting
16 CHAIR KASSEKERT: Is there anyone in the
17 public that wishes to be heard?
18 Seeing no one, I'll close this motion
19 portion of the meeting and entertain a motion to
20 adjourn.
21 COMMISSIONER SOMMELING: Make a motion to
22 adjourn.
23 COMMISSIONER FEDORKO: Second.
24 CHAIR KASSEKERT: The motion has been made
25 and seconded. All in favor?
52
1 (Ayes.)
2 CHAIR KASSEKERT: Opposed?
3 (No response.)
4 CHAIR KASSEKERT: The motion carries.
5 (Public meeting 06-03-01 was adjourned at
6 11:10 a.m. )
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1
2 C E R T I F I C A T E
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5 I, DARLENE SILLITOE, a Certified Shorthand
6 Reporter and Notary Public of the State of New
7 Jersey, certify that the foregoing is a true and
8 accurate transcript of the proceedings.
9
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11 I further certify that I am neither
12 attorney, of counsel for, nor related to or employed
13 by any of the parties to the action; further that I
14 am not a relative or employee of any attorney or
15 counsel employed in this case; nor am I financially
16 interested in the action.
17
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19 DARLENE SILLITOE CSR
20 License No XI01023
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22
Dated: March 6, 2006
23 My Commission Expires on
July 10, 2009
24 ID No 2062871
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